GoDaddy Inc., the provider of domain names and website hosting, is seeking a valuation of as much as $2.87 billion in an initial public offering.
The company is seeking to raise as much as $418 million, offering 22 million shares at $17 to $19 apiece, according to a regulatory filing Thursday. Those terms imply a market value of $2.57 billion to $2.87 billion.
GoDaddy’s IPO comes more than three years after a group led by KKR & Co. and Silver Lake Management acquired the Scottsdale, Ariz., company for $2.25 billion. Now that the price range is set, GoDaddy can officially begin marketing the sale to investors. The IPO is scheduled to price March 31, according to data compiled by Bloomberg.
GoDaddy is seeking a valuation at a discount to other Web services providers. At the high end of the range, GoDaddy would fetch a multiple of about 2.1 times last year’s sales, while Endurance International Group Holdings Inc., which provides Internet hosting, trades at 3.7 times and Cognizant Technology Solutions Corp., a consulting firm, trades at 3.1 times, data compiled by Bloomberg show.
In 2014, GoDaddy posted $1.39 billion in revenue, a 23 percent jump from the prior year. Its net loss narrowed to $143.3 million over the same period, from $200 million in 2013, the filing showed.
GoDaddy plans to use the proceeds for a one-time payment to KKR, Silver Lake and other current owners, as well as to repay debt and for general working purposes.
KKR, Silver Lake and Technology Crossover Ventures sank $859 million of equity in the 2011 purchase, according to Moody’s Investors Service.
The firms would notch about a 110 percent unrealized gain in an IPO priced at $18 a share, the midpoint of the proposed range. The gain includes a dividend they received last year.
The three firms and Bob Parsons, founder and former chairman of GoDaddy, plan to buy up to $50 million of Class A shares in conjunction with the IPO, the prospectus shows.
Morgan Stanley, JPMorgan Chase & Co. and Citigroup Inc. are managing the offering. GoDaddy plans to list its shares on the New York Stock Exchange under the symbol GDDY.